A Little Box Worth $500 Million

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Last fall, networking industry veteran Mory Ejabat shocked even jaded Silicon Valley veterans by raising a record $500 million in private funding for his new startup, Zhone Technologies. His plan was to create a single piece of equipment capable of handling telephone, Internet, cable and broadcast TV, and wireless services--the Holy Grail of digital convergence.

On Sept. 26, the world will finally get to see what Zhone has wrought. The Broadband Access Node is a $100,000-plus machine that allows telcos, cable-TV outfits, and Internet service providers to offer all those services through one box.